Intel has appointed Malaysian-born Lip-Bu Tan as its new Chief Executive Officer, effective March 18, 2025. Tan’s appointment comes with a compensation package worth approximately US$69 million (RM306.71 million) if he reaches targets over the coming years.
Born in 1959 in Muar, Johor, Tan was raised in Singapore, where his father was the chief editor of Nanyang Siang Pau, a well-known Malaysian Chinese-language daily. His mother was a teacher and later managed the women’s hostel at Nanyang University (NU).
A brilliant student, Tan skipped multiple years in secondary school and earned a physics degree at just 19 from NU. He later moved to the United States, where he earned a master’s degree in nuclear engineering from MIT and an MBA from the University of San Francisco.
From Venture Capital to Intel
Tan has had an impressive career as both a tech executive and venture capitalist. In 1987, he founded Walden International, a venture capital firm focused on semiconductors, alternative energy, and digital media. Under his leadership, Walden International grew from US$20 million to US$2 billion by 2001 and invested in major tech companies like Creative Technology, Meituan, and SMIC. He also backed Annapurna Labs, which was later acquired by Amazon, and Nuvia, which Qualcomm bought for US$1.4 billion.
His leadership skills shone at Cadence Design Systems, where he served as CEO from 2009 to 2021. At the time, Cadence was struggling, but Tan turned it into an industry leader, providing software for advanced semiconductor design. Under his leadership, Cadence’s stock surged by 3,200%, and the company secured Apple as a major customer. His work earned him top industry honors, including the Global Semiconductor Alliance’s Dr. Morris Chang Exemplary Leadership Award (2016) and the Semiconductor Industry Association’s Robert N. Noyce Award (2022).
After his success at Cadence, Tan joined Intel’s board in 2022 as part of efforts to revitalize the company. In 2023, he took on additional oversight of Intel’s manufacturing operations. However, due to strategic disagreements, he stepped down in August 2024, only to return as CEO in March 2025.
Intel Uphill Battle
Once the undisputed leader in semiconductor technology, Intel has been struggling in recent years. It has fallen behind competitors like Nvidia and AMD, faced manufacturing setbacks, and failed to capitalize on the AI boom. Despite efforts to reinvent itself as a leading chip foundry, the company has seen slow progress and financial difficulties. In 2024 alone, Intel’s stock dropped 60%, and the company recently announced 15,000 job cuts to control costs.
One major criticism of former CEO Pat Gelsinger was his failure to re-establish Intel as a leader in AI chips. Meanwhile, Nvidia has dominated the AI chip market, growing its value significantly. Tan’s challenge is to make Intel competitive again in AI and restore confidence in its manufacturing capabilities.
A Vote of Confidence from Investors
The announcement of Tan’s appointment has already had a positive impact. Following the news, Intel’s stock surged by 13%, signaling that investors believe he may be the right person to lead the company forward. Analysts have welcomed the decision, with Bernstein analyst Stacy Rasgon stating, “If I had to pick somebody, Lip-Bu would have been at the top of that list.”
Tan himself has acknowledged the challenges ahead. In a memo to employees, he wrote, “That’s not to say it will be easy. It won’t be. But I believe with every fiber of my being that we have what it takes to win.” His strategy will focus on restoring Intel’s reputation as a world-class product company, strengthening its foundry business, and rekindling customer trust.
A Lucrative Pay Package
As part of his appointment, Tan will receive a total compensation package worth approximately US$66 million, according to an SEC filing. His base salary is set at US$1 million per year, with an additional US$2 million in potential bonuses.
Beyond his salary, Tan will receive stock units in a long-term equity grant valued at US$14.4 million and a performance grant of US$17 million in Intel shares, both of which will vest over five years. If Intel’s stock price declines over the next three years, Tan will not earn any of these shares, but he stands to gain more if the company’s stock outperforms the market.
Additionally, he has been awarded US$9.6 million in stock options and a new hire option grant worth US$25 million. To align himself with shareholder interests, Tan has also agreed to personally purchase US$25 million worth of Intel shares and hold them to be eligible for grants and bonuses.
Intel has justified the package, stating that his compensation reflects his experience and credentials as an accomplished technology leader with deep industry expertise and that the majority of his pay is equity-based and tied to long-term shareholder value creation.
The Road Ahead
With Tan at the helm, Intel is entering a make-or-break period. Can he bring the same magic that transformed Cadence to a company of Intel’s size and complexity? Will Intel be able to develop AI chips that compete with Nvidia? And will the foundry business ever take off?
Only time will tell, but one thing is certain: all eyes are now on Lip-Bu Tan, Malaysian-born tech leader, and the future of Intel.
Source: 1| 2| 3
Related articles:
Meet Liang Wenfeng, The Founder of DeepSeek and OpenAI’s Biggest Threat
Goh Peng Ooi: The Butcher’s Son Who Became Malaysia’s First Tech Billionaire
Discussion about this post